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Over 90% of target items to be exempt from additional tariffs, only MFN rates to apply
Heads of state at summit instruct implementation... First meeting of agricultural working group within the year
As a follow-up to the economic and trade agreement endorsed at the US-China summit, China has disclosed the items subject to mutual tariff reductions, each valued at approximately $30 billion (about 40.8 trillion won).
China included US agricultural products and coal in its tariff reduction list, while the US included Chinese toys, home appliances, and other items.
On the 28th, China's Ministry of Commerce announced on its website that the US and China had agreed on a list of '30 billion dollars vs. 30 billion dollars' mutual tariff reduction items during the 8th economic and trade negotiations held in New York and Washington, D.C. from the 20th to the 23rd, and disclosed the specific target items.
According to the 'Agreement on 8 Achievements' of the US-China summit, which China's Ministry of Foreign Affairs released on the 26th, the leaders of both countries acknowledged the results of the economic and trade negotiations, including the $30 billion mutual tariff reduction and the establishment of a trade council, and instructed their implementation.
China's tariff reduction targets included US agricultural products, personal care products, medical devices, and coal.
The US side decided to lower tariffs on approximately $30 billion worth of goods, including Chinese toys, home appliances, baby products, kitchen and bathroom products, and holiday gift items.
In particular, for over 90% of the goods included in the tariff reduction list, the US and China agreed to eliminate all additional tariffs they had imposed on each other and apply only the Most-Favored-Nation (MFN) rates.
Both countries are expected to implement the tariff reduction measures simultaneously after completing their respective domestic legal procedures.
Earlier, the Chinese Ministry of Commerce announced on the morning of the same day, through an explanatory document on the results of the 8th US-China economic and trade negotiations under the name of the head of the Department of American and Oceanian Affairs (equivalent to a 'bureau' in Korean central government ministries), that tariffs on US coal would be included in the mutual tariff reduction list.
The Ministry of Commerce emphasized, "This measure will help China expand its imports of US coal in 2027 and 2028," adding, "Imports of US coal will complement China's domestic coal market while providing stable revenue and jobs for the US coal industry."
In the agricultural sector, following a principled agreement in May by both sides to include some agricultural products in the tariff reduction list, they decided to activate a specific consultative body.
The two countries decided to establish an agricultural working group jointly led by China's Ministry of Commerce and the Office of the United States Trade Representative (USTR) under the US-China Trade Council and hold its first meeting before the end of this year.
The Ministry of Commerce stated that it would continue to urge the US side to address China's concerns in the agricultural sector through the working group meetings.
A principled agreement was also reached in the financial services sector.
China decided to review applications for operations and branch establishments by foreign financial service institutions in China, including US financial institutions, in accordance with relevant laws and regulations, and determine whether to approve them.
China also stated that it requested the US side to provide a fair, transparent, and stable policy environment for Chinese financial institutions.
Regarding the US-China Investment Council, the economic and trade teams of both countries agreed to hold regular dialogues on potential investment opportunities and barriers, enhance policy transparency and predictability, and address the reasonable concerns of businesses.
The two countries also exchanged views on expanding direct passenger flights between the US and China and agreed to continue communication on increasing flights and related matters.
In addition, the next meeting for the Artificial Intelligence (AI) dialogue is scheduled to be held before the end of November.
Regarding the two-month extension of the 'trade truce,' which was set to end on November 10, until January 10 next year, the Ministry of Commerce stressed that discussions on the possibility of further extensions would continue.
China's Ministry of Commerce stated, "This extension provides time to review the implementation of existing agreements and to consider how to develop future economic and trade relations," adding, "We will explore options for further extensions through high-level economic and trade consultations by the end of the year."
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